Circularity opportunities in the cashew value chain in Vietnam : a thesis presented in partial fulfilment of the requirements for the degree of Master of Agribusiness, School of Agriculture and Environment, Massey University, Manawatu Campus, New Zealand

Abstract

The Vietnamese cashew industry, a global export leader, operates on a predominantly linear "take-make-dispose" model, leading to economic vulnerabilities and environmental degradation in part due to the systematic underutilization of by-products like cashew nut shells and apples. The application of Circular Economy principles may offer a promising pathway, however, achieving this potential necessitates a detailed analysis. First, it necessitates to understand the industry’s structure, governance, and actor relationship through value chain analysis (VCA). Second, it requires to trace physical resource flows, quantify material inefficiencies, and pinpoint hotspots of material loss and underutilization through material flow analysis (MFA). Currently, a comprehensive, intergrated analysis connecting these three disciplines−value chain dynamics, material flows, and circularity potential−is lacking. This study fills that gap by conducting an integrated assessment of the cashew value chain in Binh Phuoc Province, Vietnam's primary cashew hub. The research employed a qualitative approach. Primary data were collected in 2025 through 58 semi-structured interviews with key value chain actors (agricultural input suppliers, farmers, collectors, traders, processors and government officers) and direct measurements at farms and processing facilities. Participants were recruited using purposive and snowball sampling to capture diverse perspectives and multi-stage processes. For MFA, a sub-sample of 10 farms and 3 processing facilities was selected for on-site quantification of material conversions. Qualitative data were analyzed using Reflexive Thematic Analysis, while quantitative MFA data were used standard mass-balance procedures to map and quantify all material flows. The findings reveal that the Vietnamese cashew sector is heavily reliant on raw nut imports (90%). The processed cashew nut value chain has a multi-layer structure and a variety of value chain players including agricultural input suppliers, smallholder farmers, traders, collectors, processors, and export brokers. It is dominated by processors who control information and limit smallholder upgrading. The material flow analysis uncovered a significant inefficiency: a mere 2% mass yield of kernel from the whole fruit harvested. This is associated with the systematic waste of the cashew apple (90% of the fruit) and only basic utilization of the cashew nutshell for cashew nutshell liquid (CNSL) extraction, which is then exported for advanced manufacturing. The research concludes that the sector exhibits uneven circularity−a form of partial adoption where byproduct valorization is incremental and economically opportunistic rather than planned. This highlights untapped potential for a more circular model that captures greater value domestically. Consequently, transitioning to a more circular model is technically and economically viable but requires a systemic shift which encouraging greater collaboration between stakeholders. Recommendations include strengthening vertical and horizontal coordination to improve governance and equity, alongside government incentives to stimulate domestic investment in cashew apple valorization and advanced CNSL refining. This research contributes a novel, integrated framework for analyzing agri-food value chains and offers a practical roadmap for enhancing the sustainability and competitiveness of the Vietnamese cashew sector, underscoring that effective circularity necessitates integrated governance and supportive policies.